India: Foundry scrap prices firm up in Kolkata while Kolhapur market stays stable

• Prices remain stable across major foundry hubs
• Steady auto and agri demand keeps sentiment stable

The Indian foundry scrap market continued to trade in a stable range this week, with no major price movement observed across key regions. Market participants noted that scrap supply has slightly improved compared to the previous week, though inflows are still not enough to create any pressure on prices. Demand from the automotive, tractor, and agricultural component sectors remains firm, helping maintain a balanced market sentiment.

Demand overview

Foundries producing components for commercial vehicles and agricultural machinery are performing well, supported by a steady flow of orders, said sources. These segments continue to show healthy demand enabling foundries to operate smoothly and maintain stable production schedules.

Indian foundries that rely heavily on exports to the US and other overseas markets are facing significant challenges following the tariff announcement. These units are witnessing a sharp drop in orders leading to production cuts, potential workforce reductions, cash-flow pressure, and rising uncertainty about future demand.

In contrast, foundries catering primarily to the domestic market remain relatively insulated from the immediate impact. However, they too face secondary risks such as potential oversupply, cheaper imported material entering the market, and pressure on profit margins.

Weekly price movements

Kolkata scrap prices moved up this week due to tight supply conditions, with traders reporting limited availability across local yards. In contrast, the Kolhapur market remained stable, with prices holding within the previous range as supply and demand stayed balanced.

Eastern region (Kolkata, West Bengal): Plate cutting scrap traded at INR 35,000-35,500/t DAP Kolkata supported by tight supply conditions and a marginal improvement in prices.

Western region (Kolhapur, Maharashtra): Plate cutting scrap was heard at INR 35,700-36,000/t, unchanged from last week. CR bushling (low-manganese) held stable in the range of INR 39,000-39,500/t, with limited high-quality material available.

Outlook

In the near term, the foundry scrap market is expected to remain stable, with no sharp price movements expected. Demand from the auto and agri-component segments is expected to remain healthy. If scrap inflows improve further, minor corrections cannot be ruled out but any significant downside remains unlikely unless demand weakens.